The EUR/USD currency exchange rate was heading to the 1.1170 level, where it would meet with two pivot points that will provide support to the pair.
Latest Fundamental Event Report
The European Common Currency traded sideways against the US Dollar, following the US Non-Manufacturing PMI data release on Monday at 14:00 GMT. The EUR/USD exchange currency rate gained 6 pips or 0.05% right after the release. The Euro continued trading at the 1.1195 level against the US Dollar.
Institute for Supply Management released the US Non-Manufacturing PMI data, which came out worse-than-expected of 53.7 compared with the forecast of 55.5.
Anthony Nieves, Chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee commented: "The NMI registered 53.7 percent, which is 1.4 percentage points lower than the June reading of 55.1 percent. This represents continued growth in the non-manufacturing sector, at a slower rate. This is the index's lowest reading since August 2016, when it registered 51.8 percent. Respondents indicated ongoing concerns related to tariffs and employment resources. Comments remained mixed about business conditions and the overall economy."
Economic calendar
During this week there are no more scheduled data releases that might significantly impact the EUR/USD.
EUR/USD hourly chart's review
During Tuesday, the EUR/USD currency pair traded sideways within the cluster formed by the weekly R2, as well the weekly R1 and the monthly PP, located at 1.1234 and 1.1171 respectively.If the given cluster holds, it is expected, that the exchange rate could maintain its consolidation within the following trading session.
However, note, that the pair is supported by the 55-hour moving average, currently located at 1.1192. Thus, the rate could breach the given cluster north.
It is unlikely, that the pair could decline lower than 1.1137 due to the support formed by the 100– and 200-hour SMAs.
Hourly Chart
On the daily candle chart it can be observed that the EUR/USD bounced off the lower trend line of a large scale descending channel pattern.
On Tuesday, the rate had reached the combined resistance of the weekly R2 and the 55 and 100-day simple moving averages near 1.1230. By doing this the EUR/USD has removed some of the oversold pressure.
Daily chart
On Tuesday, 72% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Wednesday's London trading session traders had not closed the positions, as 71% of open EUR/USD position volume was in short positions.
Meanwhile, trader set up pending orders in 100-pip range around the pair were almost neutral, as 53% of all orders were set to sell and 47% were to buy.